Gold News & Info

Source:Bill Musgrave, American Gold Exchange

AustinGold rose 0.2% to close above $1,759 as concerns about slowing global growth and higher inflation stoked demand for safe-haven assets. It was the metal's highest finish in a week.

The global recovery is losing momentum, the International Monetary Fund said today, cutting its worldwide growth forecast by 1% to 5.9% this year and 4.9% in 2022. Pandemic-related supply-disruptions and rising inflation are slowing wealthy nations while the worsening pandemic is hammering poorer ones, according to the IMF analysis.

Small business owners are losing confidence in the recovery, with the NFIB optimism index slipping last month to the lowest level sine March. Broad shortages of key supplies and skilled workers were cited as causes for the dimming outlook.

China's Evergrande Group missed its third straight bond payment this week, adding to worries that the gigantic and deeply leveraged property firm may default. If that happens, more defaults are likely in China's $5 trillion property sector, which constitutes around a quarter of its economy.

Wall Street fell on risk aversion, with the Dow, Global Dow, and S&P 500 all dropping more than 0.4%.

Benchmark 10-year Treasury yields dropped back below 1.6% as investors moved back to the relative safety of government debt. Falling yields support gold by reducing the opportunity cost for holding it instead of bonds.

Gold's gains were capped by a rising dollar, which picked up 0.2% against major rivals, also on flights to safety. A rising dollar makes gold pricier in other currencies, limiting overseas demand.

The other precious metals were mixed, with silver and palladium dropping 0.7% and 3.4%, respectively, while platinum added 0.5%.

At the Comex close: December gold gained $3.60 to $1,759.30; December silver slid 15 cents to $22.51; January platinum picked up $4.80 to $1,011.70; and December palladium dropped $71.70 to $2,047.80 an ounce.